Logistics share issue gets huge response

The Initial public offering made by Arab International Logistics Company is said to have been oversubscribed by 80 times.

This shows that the upbeat trend initiated by the Amlak IPO more than a year ago is continuing unabated with Addar Properties issue getting oversubscribed by 458 times and collecting Dh377.6 billion - more than the country's gross domestic product of the UAE - during the last quarter of the last year.

This was followed by a couple of other issues, which were also oversubscribed and had also led to a grey market much before the listing.

The AIL issue, according to Shuaa Capital's head of capital markets, Salam Saadeh, did not witness any leveraging activities supported by the banks.

Altogether, 36,000 applications were there and all are guaranteed of at least 1,000 shares plus about 1.19 per cent of the shares subscribed for, according to Salam Saadeh.

UAE nationals accounted for about 85 per cent of subscriptions.